Allient Announces Acquisition of SNC Manufacturing

Rhea-AI Summary

Allient Inc. (ALNT) acquires SNC Manufacturing Co., Inc., a premier designer and manufacturer of electrical transformers, expanding capabilities and capacity in the Allied Power Technology Pillar. SNC's offerings are complementary to Allient's current power quality capabilities, providing incremental, low-cost manufacturing capacity. With approximately $40 million in revenue for the trailing twelve months, SNC serves blue-chip customers in defense, industrial automation, alternative power generation, and energy sectors.

Insights

Market Research Analyst

The acquisition of SNC Manufacturing Co., Inc. by Allient Inc. represents a strategic move to enhance Allient's position in the power technology sector. This expansion is likely to affect market dynamics by potentially increasing Allient's market share in the clean power industry, industrial automation, defense and energy sectors. The addition of SNC's low-cost manufacturing capacity in Mexico and China could provide Allient with a competitive edge in terms of production efficiency and cost management.

Moreover, the retention of SNC's leadership team, including its President and COO, indicates a smooth transition and continuity of expertise. This could facilitate the integration process and minimize disruption. The move also signals Allient's commitment to growth and could lead to synergies through combined sales channels and expertise. For stakeholders, this acquisition could suggest long-term value creation, although the short-term financial impact would need to be assessed in terms of acquisition costs and the efficiency of the integration process.

Financial Analyst

From a financial perspective, Allient's acquisition of SNC Manufacturing Co., Inc. for approximately $40 million in revenue adds a tangible increase to Allient's top-line figures. This acquisition could be seen as a revenue diversification strategy, potentially enhancing Allient's earnings stability across various sectors such as defense and renewable energy. It is essential to monitor how this acquisition will affect Allient's profit margins and operating costs, considering the integration of SNC's existing manufacturing facilities.

Analyzing the deal's impact on Allient's balance sheet, particularly in terms of debt levels and cash flow, is crucial. Investors should look for improvements in Return on Invested Capital (ROIC) post-acquisition, which would indicate efficient use of capital. Additionally, the use of Allient Systematic Tools to drive productivity and margin improvements could be a positive indicator for operational efficiency gains in the long run.

Energy Sector Analyst

The acquisition's impact on the clean power industry and alternative energy markets is noteworthy. SNC's expertise in electrical transformers for renewable energy applications aligns with global trends towards sustainable energy solutions. This could position Allient favorably in a fast-growing sector and potentially drive demand for its power quality products.

Furthermore, the strategic enhancement of capabilities in defense and industrial automation suggests a broader market application for Allient's products, possibly leading to increased resilience against market fluctuations in individual sectors. The focus on expanding into the energy and alternative energy markets is particularly relevant, given the current global emphasis on energy security and transition to low-carbon economies. Allient's stakeholders should consider the long-term benefits of being positioned in these growth areas, despite the inherent risks associated with the rapidly evolving technology and regulatory landscapes in the energy sector.

 Expands capabilities and capacity in Allient’s Allied Power Technology Pillar

BUFFALO, N.Y.--(BUSINESS WIRE)-- Allient Inc. (formerly known as Allied Motion Technologies Inc.) (Nasdaq: ALNT) (“Allient” or the “Company”), a global designer and manufacturer of precision and specialty Motion, Controls and Power products and solutions for targeted industries and applications, today announced the acquisition of SNC Manufacturing Co., Inc. (“SNC”), a premier designer and global manufacturer of electrical transformers serving blue-chip customers in defense, industrial automation, alternative power generation and energy, including electric utilities and renewable energy. SNC’s offerings are complementary to Allient’s current power quality capabilities while also providing needed incremental, low-cost manufacturing capacity. SNC will become a Technology Unit of Allient within the Allied Power Technology Pillar and will report to Ashish Bendre, Corporate VP and Group President.

Richard S. Warzala, Chairman, President and CEO of Allient, commented, “SNC is a solid addition to our Allied Power pillar. In addition to extending our capabilities in the clean power industry, SNC will provide us broader and deeper reach into industrial automation, defense, medical and in the energy and alternative energy markets. The business will also provide expanded opportunities to leverage sales channels and, additionally, we will gain much-needed manufacturing capacity and expertise to further grow our power quality business. And lastly, we are confident that through the utilization of Allient Systematic Tools we are in a good position to leverage our expertise to drive productivity and margin improvements over time.

“We are honored that John Vette III, selected Allient to carry the legacy of SNC forward after owning and leading the Company for 50+ years. John has built a strong leadership team and Jim Koepke the current President and COO of SNC will continue to lead SNC under Allient as the VP and General Manager of the Technology Unit. Jim will report directly to Ashish Bendre. We are confident that under the leadership of Ashish and Jim, the opportunities for Allied Power with this new addition will be greatly accelerated. We welcome the leadership team and the entire SNC workforce to the Allient family and we look forward to continued growth and success in the future.”

Founded in 1946, SNC is headquartered in Oshkosh, Wisconsin with approximately 440 employees in three locations. With approximately $40 million in revenue for the trailing twelve months, the business has other manufacturing facilities in Mexico and China. SNC’s leadership team will be staying with the business.

About Allient Inc.

Allient (Nasdaq: ALNT) is a global engineering and manufacturing enterprise that develops solutions to drive the future of market-moving industries, including medical, life sciences, aerospace and defense, industrial automation, robotics, semi-conductor, transportation, agriculture, construction and facility infrastructure. A family of globally responsible companies, Allient takes a One-Team approach to “Connect What Matters” and provides the most robust, reliable, and high-value products and systems by utilizing its core Motion, Controls, and Power technologies and platforms.

Headquartered in Buffalo, N.Y., Allient employs more than 2,250 team members around the world.
To learn more, visit www.allient.com.

Safe Harbor Statement

The statements in this news release that relate to future plans, events or performance are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements. Examples of forward-looking statements include, among others, statements the Company makes regarding expected operating results, margin improvement, sales growth, anticipated levels of capital expenditures, the Company’s belief that it has sufficient liquidity to fund its business operations, and expectations with respect to the conversion of backlog to sales. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company’s current beliefs, expectations and assumptions regarding the future of the Company’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control. The Company’s actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, general economic and business conditions, conditions affecting the industries served by the Company and its subsidiaries, conditions affecting the Company's customers and suppliers, competitor responses to the Company's products and services, the overall market acceptance of such products and services, the pace of bookings relative to shipments, the ability to expand into new markets and geographic regions, the success in acquiring new business, the impact of changes in income tax rates or policies, impacts of a global pandemic, the resurgence of a pandemic or the lingering effects of a pandemic, and of businesses’ and governments’ responses to a pandemic on our operations and personnel, and on commercial activity and demand across our and our customers’ businesses, and on global supply chains; the ability to attract and retain qualified personnel, the ability to successfully integrate an acquired business into our business model without substantial costs, delays, or problems, and other factors disclosed in the Company's periodic reports filed with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict the occurrence of those matters or the manner in which they may affect us. The Company has no obligation or intent to release publicly any revisions to any forward looking statements, whether as a result of new information, future events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240111484206/en/

Investor Contacts:

Deborah K. Pawlowski / Craig P. Mychajluk

Kei Advisors LLC

716-843-3908 / 716-843-3832

dpawlowski@keiadvisors.com / cmychajluk@keiadvisors.com

Source: Allient Inc.

FAQ

What is the name of the company mentioned in the press release?

Allient Inc. (ALNT) announced the acquisition of SNC Manufacturing Co., Inc.

What does SNC Manufacturing Co., Inc. specialize in?

SNC is a premier designer and global manufacturer of electrical transformers serving blue-chip customers in defense, industrial automation, alternative power generation, and energy, including electric utilities and renewable energy.

How many employees does SNC Manufacturing Co., Inc. have?

SNC is headquartered in Oshkosh, Wisconsin with approximately 440 employees in three locations.

What was SNC Manufacturing Co., Inc.'s revenue for the trailing twelve months?

SNC had approximately $40 million in revenue for the trailing twelve months.

Who will lead SNC Manufacturing Co., Inc. under Allient?

Jim Koepke, the current President and COO of SNC, will continue to lead SNC under Allient as the VP and General Manager of the Technology Unit, reporting directly to Ashish Bendre, Corporate VP and Group President of Allient.